HMO-like plans may make comeback in exchanges

When health insurance exchanges created through the Affordable Care Act go live on Oct. 1, consumers are likely going to have the option to choose lower-cost, limited network plans similar to HMOs that fell out of favor in the 1980s and 1990s (Source: "HMO-Like Plans May Be Poised To Make Comeback In Online Insurance Markets," Kaiser Health News, Jan. 22, 2013).

Because the plans typically offer lower premiums, insurers are expecting that HMO-like plans will appeal to consumers who will be able to compare prices on plans in the exchange.

"Plans will basically say they can minimize their risk by creating narrow networks," says John Weis, president of Quest Analytics, an Appleton, Wis., firm that analyzes provider networks for insurers.